BSE revises circuit limit for 10 stocks including Jio Financial Services, RailTel, RattanIndia Power
RailTel Corporation of India, India Pesticides and RattanIndia Power. BSE uses a circuit filter mechanism to keep in check excessive volatility in a scrip. It is the maximum fluctuation that is allowed in a stock in a day.
The new limits will be effective from Monday, September 4, according to a notification issued by BSE. The circuit limit of Jio Financial Services, the demerged non-banking financial services unit of Mukesh Ambani-led Reliance group, has been revised to 20T from the existing 5%. Read here: BSE changes circuit filters for Jio Financial Services from 5% to 20% Circuit filters ensure stock prices do not fluctuate beyond the prescribed level during a session.
Jio Financial Services shares will also be out of the trade-to-trade segment next week. Additionally, the JFSL shares were removed from all the BSE Indices, including the benchmark Sensex, on September 1. Among other stocks, the price bands of Shri Venkatesh Refineries to 10%, RailTel Corporation of India, India Pesticides, S R G Securities Finance, Super Fine Knitters and Dolphin Offshore Enterprises (India) have been revised to 10%.
The price bands of Rishabh Digha Steel & Allied Products, Vertex Securities and RattanIndia Power have been revised to 5%. NSE and BSE set price bands for all securities which serve as boundaries for stock trading. The purpose of circuit limits is to curb extreme volatility in stocks, protect investors’ interest and enhance market integrity.
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